Question

A real-estate agent earns a commission on a house she sells. Her commission 5% on the first $500,000 ofthe sale price of the house. She then earns a 6% commission for the amount above $500,000 of the salé price of the house. How much commission did the agent earn if she sold a house for $585,000?

Answer 1

Because 585k > 500k, then the commission would be 6%.

Percent: 6% = 0.06

Now we will multiply the cost of the house by the percentage to find the commission amount:

1) 0.06(585,000) = 35,100

The total amount the agent will receive would be $35,100.